Abu Dhabi, UAE – January 11, 2017: The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Masdar, Abu Dhabi Future Energy Company to acquire its 49 per cent share in Al Reyadah, a carbon solutions and utilization business.
The deal makes ADNOC the sole shareholder in Al Reyadah and enables the full integration of the company into ADNOC’s upstream company, ADNOC Onshore.
Since late 2016, ADNOC has been utilizing the CO2 captured and transported by Al Reyadah for injection into its onshore fields to effectively boost oil production as part of its Enhanced Oil Recovery (EOR) strategy.
Abdulmunim Saif Al Kindy, Director of ADNOC’s Upstream Directorate, said: “The integration of Al Reyadah into ADNOC Onshore will further optimize resources while guiding the full chain of the CO2 business. It will drive the CO2 capture and utilization options, including deploying CO2 EOR technology, needed to unlock maximum value from our hydrocarbon resources.”
Bader Al Lamki, Executive Director of Clean Energy at Masdar said: “Incubating clean technologies for application on a wider scale is part of our mandate as a renewable energy pioneer in the Arab world. The full integration of Al Reyadah within ADNOC’s upstream operations bodes well for the next phase of the company’s development and the further commercialisation of carbon capture technology.”
Al Reyadah unveiled its first project in November, 2016, with the capacity to sequester up to 800,000 tonnes of CO2 each year. The facility captures CO2 emitted by Emirates Steel Industries (ESI), before piping it 43 kilometres to ADNOC’s Rumaitha and BAB oilfields, where it is injected into wells to increase oil recovery and liberate natural gas, previously used in EOR, for domestic consumption, power generation and water desalination.
ADNOC was the first National Oil Company to pilot CO2 injection in EOR in 2009.